The acid-test ratio is also known as the
A) current ratio.
B) quick ratio.
C) fast ratio.
D) times interest earned ratio.

Question

Quizplus · Accepted Answer

The acid-test ratio is also known as the quick ratio, as it measures a company's ability to meet its short-term obligations with its most liquid assets. The other options listed (current ratio, fast ratio, times interest earned ratio) are different ratios that measure different aspects of a company's financial performance.

The Acid-Test Ratio Is Also Known as the